Trump administration steps up sanctions against China's Huawei, blacklists 38 'affiliates'

The US Commerce Department on Monday added more "Huawei affiliates" to its "entity list" asserting that the Chinese company has been using international subsidiaries to circumvent sanctions which prevents export of US-based technology.

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Commerce Secretary Wilbur Ross said,"Huawei and its affiliates have worked through third parties to harness US technology in a manner that undermines US national security and foreign policy interests."

The list included 38 affiliates in 21 countries which formed part of the US blacklist.

The rule change will prevent Huawei from circumventing US law through alternative chip production and provision of off-the-shelf chips. Huawei has continuously tried to evade US restrictions imposed in May," US secretary of state Mike Pompeo said.

The restriction imposed by the US government in May does not fully go into effect until September 14.

The Trump administration has accused Huawei of espionage on behalf of the Chinese government, a charge which the company has consistently denied.

Meanwhile, reports said that Huawei will stop making its Kirin chipsets next month due to US pressure. Taiwan Semiconductor Manufacturing Co (TSMC) had said earlier that it will not ship wafers to Huawei after September 15.